AGENCY TESTIMONY
Rental payments to the city's general fund
2:19:24
·
54 sec
The testimony explains the concept of rental payments from the Water Board to the city's general fund, including their original purpose and how they have evolved over time.
- Rental payments were initially intended to compensate the city for pre-existing water system debt
- The original debt justifying the rental payments was fully paid off in 2005
- After 2005, rental payments became a mechanism to move revenue from the water system to the city's general fund
- Once in the general fund, this money can be spent at the discretion of the mayor's administration on any budget priorities
Jordan Paige
2:19:24
However, one provision of the agreement allows the city to request an annual rental payment from the Waterboard.
2:19:31
This so called rental payment was intended to make the city whole as it paid off pre existing debt related to the water system.
2:19:39
That debt, which was the initial justification of the rental payment, was fully paid off in 2005.
James F. Gennaro
2:19:51
Was fully paid off in 2005?
2:19:53
Like Yes, sir.
2:19:53
We are.
2:19:54
Right?
2:19:54
Okay.
2:19:54
Keep going.
Jordan Paige
2:19:55
But to see this collection of the rental payment did not end there.
2:20:00
Since then, the rental payment has simply become a mechanism to move revenue from the water and sewer system to the city's general fund as a source of additional revenue.
2:20:10
Once in the general fund, it can be spent at the discretion of the mayor or administration and can be can be put towards any of the city's budget priorities.
